Dive Brief:
- ASAP, the on-demand delivery company owned by Waitr Holdings, has launched home and office restaurant delivery in New York City, the company announced Thursday.
- This move is part of ASAP’s strategy to expand within the tri-state area. It already offers delivery in several New Jersey cities.
- ASAP previously struck a five-year deal with MetLife Stadium to provide in-stadium ordering during events and New York Giants and New York Jets games.
Dive Insight:
ASAP’s move into the Big Apple marks the company’s largest market to date, and will put it in competition with the top three delivery companies — each which holds about one-third of New York City’s delivery market share. New York City has also become one of toughest markets to operate in from a regulatory standpoint. Within the last few years, the city added delivery worker protection laws, a delivery fee cap and other food delivery regulations.
ASAP has largely shifted its strategy away from focusing on secondary and tertiary markets, and has set its sights on larger areas this year. The company has also expanded beyond restaurant delivery and now offers delivery for alcohol, groceries, convenience and retail. Earlier in the month, it signed a deal to start delivering auto parts from Napa Auto Parts. This week, it announced a partnership with Unilever to deliver ice cream from restaurant partners and Unilever’s virtual marketplace, The Ice Cream Shop.
The company’s biggest competitor will likely be DoorDash, which has been expanding into similar areas of delivery and gaining national retail partnerships. It will also be tough to beat the name recognition Grubhub has in New York City — one of its oldest markets — where parent company Just Eat Takeaway was well known under Seamless branding.
